By Asian Development Bank
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Additional resources for Asia 2050: Realizing the Asian Century
22 “ Consumption by the global middle class accounts for almost one-third of total global demand, roughly divided evenly between North America, Europe and Asia stock will rise. In ﬁve years, Asia will be contributing Consumption by the global middle class accounts for almost one-third of total global demand, roughly this trend continues, that proportion will be almost divided evenly between North America, Europe and three-quarters by 2050. Asia, but heavily concentrated in advanced countries, which account for two-thirds of total middle class consumption (Table 1).
Cities and risks that Asia must overcome in sustaining its growth coastal areas have beneﬁted ﬁrst, while interior regions momentum and realizing the Asian Century. The re- lag behind. Skilled workers have reaped a dispropor- gion must confront ﬁve mega challenges. (i) large and, tionate share of the gains from globalization. This has in some cases, rising inequities and disparities within led to large disparities within individual countries: for countries that could alter the political and social fabric example: between the coastal and western provinces of the region; (ii) the risk of falling into the Middle In- in PRC; eastern, southern, and western states in In- come Trap due to a host of domestic economic, social dia, east and west Java, north and south in Sri Lanka and political challenges faced by individual countries; and so on.
7 percent of 2030, if growth continues and if households share in GDP, well below the global average (61 percent) and that growth, 75 percent of PRC’s population will enjoy that of Viet Nam (66 percent), Indonesia (63 percent), middle class standards, and $2/day poverty will be India (54 percent) and Thailand (51 percent). It is also substantially wiped out. much lower than PRC’s historical share. 5 percentage even more reason to believe that household incomes points less than GDP growth. will expand by at least the growth rate of GDP and PRC has long acknowledged the need to grow its that this process will bring more households into the domestic demand, but so far has been unable to do this.
Asia 2050: Realizing the Asian Century by Asian Development Bank